Most Americans are familiar with Gen. David Petraeus, the top U.S. commander in Afghanistan, He’s one of the nation’s most well-known and popular figures. Holly, the general’s wife, is less well known, though she has worked effectively for years as an advocate for military families. That will change soon. Mrs. Petraeus was named Thursday as head of a federal agency that will work to protect military families from abusive lenders. The task is timely and will put Mrs. Petraeus squarely in public view.
Military families, of course, are not the only victims of abusive lenders in the United States. They are, however, particularly vulnerable to the unconscionable individuals and businesses that engage in predatory practices. Indeed, abusive lenders have been a major problem for the armed services for years.
The practice is so pervasive that military leaders agree that it now directly affects military readiness and morale. Mrs. Petraeus’ job, as head of the Office for Service Member Affairs in the new Consumer Financial Protection Bureau, will be to halt the abuses. It is a tough assignment. The opposition’s deep pockets and political connections make it almost immune to reform.
Predatory lending is a common complaint among military families. They are easy targets for those willing to take advantage of men and women who often are young and inexperienced consumers. In addition, many are stressed by the absence of a loved one in a war zone. As a result, the families become victims of businesses that charge exorbitant rates on loans or use high-pressure tactics to convince men and women to buy vehicles and other items using expensive loans.
If the dictum that businesses go where their market is, the presence of large numbers of check-cashing stores, payday and car title loan companies and auto loan offices just outside many of the nation’s military bases speaks volumes. It confirms the need to provide counseling and assistance to individuals who clearly need it.
The new agency is designed to do that. The office Mrs. Petraeus will lead will have the power to write — and help enforce — rules to prevent banks and non-bank companies from engaging in practices that prey on members of the armed services and their families. Some companies obviously are worried about their future. They are lobbying to be excluded from the new agency’s oversight, but they’ve found little public support so far.
Mrs. Petraeus’ appointment is not a political payoff. She’s well qualified for her new public role. She’s testified expertly before Congress about military readiness, and she’s worked for years with state and local officials to resolve issues affecting members of the armed service and their families. Most recently, she’s been a director of Better Business Bureau Military Line, a program that works with the Defense Department to educate military men and women on consumer issues. Her experience should make her a powerful advocate.
The Office for Service Member Affairs will not work in isolation. It is part of a broader effort by the Consumer Protection Financial Bureau to protect vulnerable groups — the elderly and college students, among them — from abusive lending practices. A special office for the military, though, is welcome.
Military leaders in war zones report that many men and women in uniform worry more about their families and the problems they face at home than they do about the dangers they face in combat. That’s a distraction that could prove deadly. The campaign to end the assault on military families by unprincipled lenders is a worthy one. It should provide immediate and long-term benefits to those in uniform and to the nation as a whole.